Federal Incentives

8/14/2019 Federal Incentives

1/58

FederalIncentives/Policies for Renewables & Efficiency

Financial Incentives

Energy-Efficient Commercial Buildings Tax Deduction

Last DSIRE Review: 11/17/2009Incentive Type: Corporate Deduction

State: FederalEligible Efficiency

Technologies:Equipment Insulation, Water Heaters, Lighting, Lighting Controls/Sensors, Chillers, Furnaces, Boilers, Heat pumps, Air conditioners,Caulking/Weather-stripping, Duct/Air sealing, Building Insulation,Windows, Doors, Siding, Roofs, Comprehensive Measures/WholeBuilding

Applicable Sectors: Commercial, Builder/Developer, State Government, Fed. Government,(Deductions associated with government buildings are transferred tothe designer)

Amount: $0.30-$1.80 per square foot, depending on technology and amount of

energy reductionMaximum Incentive: $1.80 per square foot

EquipmentRequirements: Must meet certification requirements

Web Site: http://www.efficientbuildings.org

Authority 1: 26 USC 179D

Date Enacted: 8/8/2005 (subsequently amended)

Date Effective: 1/1/2006

Expiration Date: 12/31/2013

Authority 2: H.R. 1424: Div. B, Sec. 303 (The Energy Improvement and ExtensionAct of 2008)

Date Enacted: 10/3/2008

http://thomas.loc.gov/cgi-bin/query/z?c110:H.R.1424.enr:http://www.dsireusa.org/documents/Incentives/US40F.htmhttp://www.efficientbuildings.org/http://thomas.loc.gov/cgi-bin/query/z?c110:H.R.1424.enr:http://thomas.loc.gov/cgi-bin/query/z?c110:H.R.1424.enr:http://www.dsireusa.org/documents/Incentives/US40F.htmhttp://www.efficientbuildings.org/http://www.efficientbuildings.org/http://www.dsireusa.org/incentives/allsummaries.cfm?State=us&re=1&ee=1&printable=1


2/58

Summary:The federal Energy Policy Act of 2005 established a tax deduction for energy-efficientcommercial buildings applicable to qualifying systems and buildings placed in service from

January 1, 2006, through December 31, 2007. This deduction was subsequently extendedthrough 2008, and then again through 2013 by Section 303 of the federal Energy Improvementand Extension Act of 2008 (H.R. 1424, Division B), enacted in October 2008.

A tax deduction of $1.80 per square foot is available to owners of new or existing buildingswho install (1) interior lighting; (2) building envelope, or (3) heating, cooling, ventilation, orhot water systems that reduce the buildings total energy and power cost by 50% or more incomparison to a building meeting minimum requirements set by ASHRAE Standard90.1-2001. Energy savings must be calculated using qualified computer software approved bythe IRS. Click here for the list of approved software.

Deductions of $0.60 per square foot are available to owners of buildings in which individuallighting, building envelope, or heating and cooling systems meet target levels that wouldreasonably contribute to an overall building savings of 50% if additional systems wereinstalled.

The deductions are available primarily to building owners, although tenants may be eligible ifthey make construction expenditures. In the case of energy efficient systems installed on or ingovernment property, tax deductions will be given to the person primarily responsible for thesystems design. Deductions are taken in the year when construction is completed.

The IRS released interim guidance (IRS Notice 2006-52) in June 2006 to establish a process to

allow taxpayers to obtain a certification that the property satisfies the energy efficiencyrequirements contained in the statute. IRS Notice 2008-40 was issued in March of 2008 tofurther clarify the rules. NREL published a report (NREL/TP-550-40228) in February 2007which provides guidelines for the modeling and inspection of energy savings required by thestatute, and the US Department of Energy has compiled a list of qualified computer softwarefor calculating commercial building energy and power cost savings.

Click here for answers to frequently asked questions provided by the Commercial BuildingTax Deduction Coalition.

For more information, visit the Energy Star web site.
http://www.irs.gov/http://www.energystar.gov/index.cfm?c=products.pr_tax_credits#7http://www.efficientbuildings.org/about_the_provision.htmlhttp://www1.eere.energy.gov/buildings/qualified_software.htmlhttp://www.nrel.gov/docs/fy07osti/40228.pdfhttp://www.energytaxincentives.org/uploaded_files/irs_notice2008-40.pdfhttp://www.irs.gov/pub/irs-drop/n-06-52.pdfhttp://www1.eere.energy.gov/buildings/qualified_software.html


3/58

Contact:

Public Information - IRSU.S. Internal Revenue Service1111 Constitution Avenue, N.W.Washington, DC 20224

Phone: (800) 829-1040Web Site: http://www.irs.gov

Modified Accelerated Cost-Recovery System (MACRS) + Bonus Depreciation (2008-2009)

Last DSIRE Review: 02/19/2009Incentive Type: Corporate Depreciation

State: Federal

Eligible Renewable/Other Technologies:

Solar Water Heat, Solar Space Heat, Solar Thermal Electric, SolarThermal Process Heat, Photovoltaics, Landfill Gas, Wind, Biomass,

Renewable Transportation Fuels, Geothermal Electric, Fuel Cells,Geothermal Heat Pumps, Municipal Solid Waste, CHP/Cogeneration,Solar Hybrid Lighting, Direct Use Geothermal, Anaerobic Digestion,Microturbines

Applicable Sectors: Commercial, Industrial

Authority 1: 26 USC 168

Date Effective: 1986


Summary:Under the federal Modified Accelerated Cost-Recovery System (MACRS), businesses mayrecover investments in certain property through depreciation deductions. The MACRSestablishes a set of class lives for various types of property, ranging from three to 50 years,over which the property may be depreciated. A number of renewable energy technologies areclassified as five-year property (26 USC 168(e)(3)(B)(vi)) under the MACRS, which refersto 26 USC 48(a)(3)(A), often known as the energy investment tax credit or ITC to defineeligible property. Such property currently includes:

a variety of solar electric and solar thermal technologies fuel cells and microturbines

geothermal electric direct-use geothermal and geothermal heat pumps small wind (100 kW or less) combined heat and power (CHP). The provision which defines ITC technologies as eligible also adds the general term

"wind" as an eligible technology, extending the five-year schedule to large windfacilities as well.

In addition, for certain other biomass property, the MACRS property class life is seven years.
http://www.dsireusa.org/documents/Incentives/US06Fa.htmhttp://www.dsireusa.org/documents/Incentives/US06F.htmhttp://www.irs.gov/


4/58

Eligible biomass property generally includes assets used in the conversion of biomass to heator to a solid, liquid or gaseous fuel, and to equipment and structures used to receive, handle,collect and process biomass in a waterwall, combustion system, or refuse-derived fuel systemto create hot water, gas, steam and electricity.

The 5-year schedule for most types of solar, geothermal, and wind property has been in placesince 1986. The federalEnergy Policy Act of 2005 (EPAct 2005) classified fuel cells,microturbines and solar hybrid lighting technologies as five-year property as well by addingthem to 48(a)(3)(A). This section was further expanded in October 2008 by the addition ofgeothermal heat pumps, combined heat and power, and small wind under The EnergyImprovement and Extension Act of 2008.

The federalEconomic Stimulus Act of 2008, enacted in February 2008, included a 50% bonusdepreciation (26 USC 168(k)) provision for eligible renewable-energy systems acquired andplaced in service in 2008. This provision was extended (retroactively to the entire 2009 taxyear) under the same terms by The American Recovery and Reinvestment Act of 2009, enacted

in February 2009. To qualify for bonus depreciation, a project must satisfy these criteria: the property must have a recovery period of 20 years or less under normal federal taxdepreciation rules;

the original use of the property must commence with the taxpayer claiming thededuction;

the property generally must have been acquired during 2008 or 2009; and the property must have been placed in service during 2008 or 2009

If property meets these requirements, the owner is entitled to deduct 50% of the adjusted basisof the property in 2008 and 2009. The remaining 50% of the adjusted basis of the property isdepreciated over the ordinary depreciation schedule. The bonus depreciation rules do notoverride the depreciation limit applicable to projects qualifying for the federal business energy

tax credit. Before calculating depreciation for such a project, including any bonus depreciation,the adjusted basis of the project must be reduced by one-half of the amount of the energy creditfor which the project qualifies.

For more information on the federal MACRS, seeIRS Publication 946, IRS Form 4562:Depreciation and Amortization, andInstructions for Form 4562. The IRS web site provides asearch mechanism for forms and publications. Enter the relevant form, publication name ornumber, and click "GO" to receive the requested form or publication.

* Note that the definitions of eligible technologies included in this entry are somewhat

simplified versions of those contained in tax code, which often contain additional caveats,restrictions, and modifications. Those interested in this incentive should review the relevantsections of the code in detail prior to making business decisions.
http://www.irs.gov/http://thomas.loc.gov/home/h1/Recovery_Bill_Div_B.pdf


5/58

Contact:



Residential Energy Conservation Subsidy Exclusion (Corporate)

Last DSIRE Review: 07/27/2009Incentive Type: Corporate Exemption

State: Federal

Eligible EfficiencyTechnologies: Yes; specific technologies not identified


Solar Water Heat, Solar Space Heat, Photovoltaics

Applicable Sectors: Residential, Multi-Family Residential

Amount: 100% of the subsidy

Terms: Applies to energy conservation measures on dwelling units only

Web Site: http://www.irs.gov/publications/p525/index.html


Date Enacted: 1992
http://www.dsireusa.org/documents/Incentives/US31F.htmhttp://www.irs.gov/publications/p525/index.htmlhttp://www.irs.gov/


6/58

Summary:According to Section 136 of the U.S. Code, energy conservation subsidies provided by publicutilities,* either directly or indirectly, are nontaxable: "Gross income shall not include the valueof any subsidy provided (directly or indirectly) by a public utility to a customer for the

purchase or installation of any energy conservation measure." (This exclusion does notapply toelectricity-generating systems registered as "qualifying facilities" under the Public UtilityRegulatory Policy Act of 1978.)

The term "energy conservation measure" includes installations or modifications primarilydesigned to reduce consumption of electricity or natural gas, or improve the management ofenergy demand. Eligible dwelling units include houses, apartments, condominiums, mobilehomes, boats and similar properties. If a building or structure contains both dwelling and otherunits, any subsidy must be properly allocated.

Given the definition of "energy conservation measure," there is strong evidence that utility

rebates for residential solar-thermal projects and solar-electric systems may be nontaxable.However, the IRS has not ruled definitively on this issue. For taxpayers considering using thisprovision for renewable energy systems, consultation with a tax professional is advised.

Other types of utility subsidies that may come in the form of credits or reduced rates may alsobe nontaxable, according to IRS Publication 525:

"Utility rebates. If you are a customer of an electric utility company and you participate in theutilitys energy conservation program, you may receive on your monthly electric bill either: areduction in the purchase price of electricity furnished to you (rate reduction), or anonrefundable credit against the purchase price of the electricity. The amount of the rate

reduction or nonrefundable credit is not included in your income."

* The term "public utility" is defined as an entity "engaged in the sale of electricity or naturalgas to residential, commercial, or industrial customers for use by such customers." The termincludes federal, state and local government entities.

Contact:

Public Information - IRSU.S. Internal Revenue Service1111 Constitution Avenue, N.W.Washington, DC 20224Phone: (800) 829-1040Web Site: http://www.irs.gov

Business Energy Investment Tax Credit (ITC)
http://www.irs.gov/


7/58

Last DSIRE Review: 06/10/2009Incentive Type: Corporate Tax Credit

State: Federal


Solar Water Heat, Solar Space Heat, Solar Thermal Electric, SolarThermal Process Heat, Photovoltaics, Wind, Biomass, GeothermalElectric, Fuel Cells, Geothermal Heat Pumps, CHP/Cogeneration,Solar Hybrid Lighting, Direct-Use Geothermal, Microturbines

Applicable Sectors: Commercial, Industrial, Utility

Amount: 30% for solar, fuel cells and small wind**;10%** for geothermal, microturbines and CHP

Maximum Incentive: Fuel cells: $1,500 per 0.5 kWMicroturbines: $200 per kWSmall wind turbines placed in service 10/4/08 - 12/31/08: $4,000

Small wind turbines placed in service after 12/31/08: no limitAll other eligible technologies: no limit

Eligible System Size: Small wind turbines: 100 kW or less**Fuel cells: 0.5 kW or greaterMicroturbines: 2 MW or lessCHP: 50 MW or less**

Equipment/Installation

Requirements:Fuel cells, microturbines and CHP systems must meet specific energy-efficiency criteria


Summary:Note: The American Recovery and Reinvestment Act of 2009 (H.R. 1) allows taxpayers

eligible for the federalrenewable electricity production tax credit(PTC)** to take the federal

business energy investment tax credit (ITC) or to receive agrantfrom the U.S. Treasury

Department instead of taking the PTC for new installations. The new law also allows

taxpayers eligible for the business ITC to receive agrantfrom the U.S. Treasury

Department instead of taking the business ITC for new installations. The Treasury

Department issuedNotice 2009-52 in June 2009, giving limited guidance on how to take the

federal business energy investment tax credit instead of the federal renewable electricityproduction tax credit. The Treasury Department will issue more extensive guidance at a

later time.

The federal business energy investment tax credit available under 26 USC 48 was expandedsignificantly by theEnergy Improvement and Extension Act of 2008 (H.R. 1424), enacted inOctober 2008. This law extended the duration -- by eight years -- of the existing credits forsolar energy, fuel cells and microturbines; increased the credit amount for fuel cells; established
http://thomas.loc.gov/home/h1/Recovery_Bill_Div_B.pdfhttp://thomas.loc.gov/cgi-bin/query/z?c110:H.R.1424.enr:http://www.irs.gov/pub/irs-drop/n-09-52.pdfhttp://www.dsireusa.org/library/includes/incentive2.cfm?Incentive_Code=US53F&State=federal%C2%A4tpageid=1&ee=1&re=1http://www.dsireusa.org/library/includes/incentive2.cfm?Incentive_Code=US53F&State=federal%C2%A4tpageid=1&ee=1&re=1http://www.dsireusa.org/library/includes/incentive2.cfm?Incentive_Code=US13F&State=federal%C2%A4tpageid=1&ee=1&re=1http://www.dsireusa.org/documents/Incentives/US02F.htm


8/58

new credits for small wind-energy systems, geothermal heat pumps, and combined heat andpower (CHP) systems; extended eligibility for the credits to utilities; and allowed taxpayers totake the credit against the alternative minimum tax (AMT), subject to certain limitations. Thecredit was further expanded by The American Recovery and Reinvestment Act of 2009, enactedin February 2009.

In general, credits are available for eligible systems placed in service on or before December31, 2016:*

Solar. The credit is equal to 30% of expenditures, with no maximum credit. Eligiblesolar energy property includes equipment that uses solar energy to generate electricity,to heat or cool (or provide hot water for use in) a structure, or to provide solar processheat. Hybrid solar lighting systems, which use solar energy to illuminate the inside of astructure using fiber-optic distributed sunlight, are eligible. Passive solar systems andsolar pool-heating systems are noteligible. (Note that the Solar Energy IndustriesAssociation has published a three-page document that provides answers to frequentlyasked questions regarding the federal tax credits for solar energy.)

Fuel Cells. The credit is equal to 30% of expenditures, with no maximum credit.However, the credit for fuel cells is capped at $1,500 per 0.5 kilowatt (kW) of capacity.Eligible property includes fuel cells with a minimum capacity of 0.5 kW that have anelectricity-only generation efficiency of 30% or higher. (Note that the credit for propertyplaced in service before October 4, 2008, is capped at $500 per 0.5 kW.)

Small Wind Turbines.** The credit is equal to 30% of expenditures, with nomaximum credit for small wind turbines placed in service after December 31, 2008.Eligible small wind property includes wind turbines up to 100 kW in capacity. (Ingeneral, the maximum credit is $4,000 for eligible property placed in service after

October 3, 2008, and before January 1, 2009. The American Recovery andReinvestment Act of 2009 removed the $4,000 maximum credit limit for small windturbines.)

Geothermal Systems.** The credit is equal to 10% of expenditures, with no maximumcredit limit stated. Eligible geothermal energy property includes geothermal heat pumpsand equipment used to produce, distribute or use energy derived from a geothermaldeposit. For electricity produced by geothermal power, equipment qualifies only up to,but not including, the electric transmission stage. For geothermal heat pumps, this creditapplies to eligible property placed in service after October 3, 2008.

Microturbines. The credit is equal to 10% of expenditures, with no maximum creditlimit stated (explicitly). The credit for microturbines is capped at $200 per kW ofcapacity. Eligible property includes microturbines up to two megawatts (MW) incapacity that have an electricity-only generation efficiency of 26% or higher.

Combined Heat and Power (CHP).** The credit is equal to 10% of expenditures,with no maximum limit stated. Eligible CHP property generally includes systems up to50 MW in capacity that exceed 60% energy efficiency, subject to certain limitations and
http://seia.org/galleries/pdf/SEIATaxManual_v3-0_FAQ.pdfhttp://thomas.loc.gov/home/h1/Recovery_Bill_Div_B.pdfhttp://thomas.loc.gov/cgi-bin/query/z?c110:H.R.1424.enr:


9/58

.systems that use biomass for at least 90% of the system's energy source, but the creditmay be reduced for less-efficient systems. This credit applies to eligible property placedin service after October 3, 2008.

In general, the original use of the equipment must begin with the taxpayer, or the system mustbe constructed by the taxpayer. The equipment must also meet any performance and quality

standards in effect at the time the equipment is acquired. The energy property must beoperational in the year in which the credit is first taken.

Significantly, The American Recovery and Reinvestment Act of 2009 repealed a previouslimitation on the use of the credit for eligible projects also supported by "subsidized energyfinancing." For projects placed in service after December 31, 2008, this limitation no longerapplies. Businesses that receive other incentives are advised to consult with a tax professionalregarding how to calculate this federal tax credit.

HistoryThe federalEnergy Policy Act of 2005 (EPAct 2005) expanded the existing federal businessenergy tax credit for solar and geothermal energy property to include fuel cells, microturbinesand hybrid solar lighting systems installed on or after January 1, 2006, and raised the credit forsolar to 30%. Prior to the provisions of EPAct 2005, a 10% credit was available to businessesthat invested in or purchased solar or geothermal energy property.

* Note that the credit for geothermal property, with the exception of geothermal heat pumps,has no stated expiration date. The credit for solar energy property reverts to 10% afterDecember 31, 2016.

** The February 2009 legislation (H.R. 1) which allows facilities that qualify for the PTC toalso qualify for the 30% ITC has implications for some technologies that were alreadypotentially eligible for either incentive in some form. Certain geothermal and open- or closed-loop biomass systems (including biomass CHP projects) now qualify for a 30% tax creditthrough through December 31, 2013, the in-service deadline for these technologies under thePTC. Wind energy systems of all sizes -- not only systems of 100 kW or less -- also nowqualify for the 30% ITC through the wind energy PTC in-service deadline of December 31,2012. Applicants should refer to the eligibility definitions of PTC to see if and how their projectmight qualify for this treatment.
http://www.irs.gov/http://thomas.loc.gov/cgi-bin/query/z?c109:h6:


10/58

Contact:



Energy-Efficient Appliance Tax Credit for Manufacturers


State: Federal

Eligible EfficiencyTechnologies: Clothes Washers, Dishwasher, Refrigerators/Freezers

Applicable Sectors: Industrial, Appliance ManufacturersAmount: Dishwashers: $45 or $75 per unit, varies by energy and water

efficiency;Clothes washers: $75 - $250 per unit, varies by type, and energy andwater efficiency;Refrigerators: $50 - $200, depending on energy-efficiency rating

Maximum Incentive: The aggregate amount of credit allowed is $75 million per taxpayer.Certain refrigerators and clothes washers will not add to the aggregatecredit amount. See summary below for more details.

Carryover

Provisions: Not specifiedEquipment/Installation

Requirements:

Appliances must meet Energy Star 2007 requirements; must be newand in compliance with all applicable performance and safetystandards

Authority 1: 26 USC 45M




Authority 2: H.R. 1424: Div. B, Sec. 305 (The Energy Improvement and Extension

Act of 2008)Date Enacted: 10/3/2008


Expiration Date: Varies by appliance and efficiency level
http://thomas.loc.gov/cgi-bin/query/z?c110:H.R.1424.enr:http://thomas.loc.gov/cgi-bin/query/z?c110:H.R.1424.enr:http://www.dsireusa.org/documents/Incentives/US42F.htmhttp://www.irs.gov/


11/58

The Energy Policy Act of 2005 established tax credits for manufacturers of high-efficiencyresidential clothes washers, refrigerators, and dishwashers produced in calendar years 2006and 2007. The Energy Improvement and Extension Act of 2008 (H.R. 1424, Division B)extended the credits for additional years depending on the efficiency rating of the manufactured

appliance. Manufacturers only receive these credits for the increase in production of qualifyingappliances over a two-year rolling baseline, and only appliances produced in the United Statesare eligible.

Credits available to manufacturers are as follows:

Dishwashers

$45 for models manufactured in calendar year 2008 or 2009 which use no more than324 kilowatt hours (kWh) per year and 5.8 gallons per cycle.

$75 for models manufactured in calendar year 2008, 2009, or 2010 which use no morethan 307 kWh per year and 5.5 gallons per cycle .

Clothes washers

$75 for residential top-loading models manufactured in 2008 which meet or exceed a1.72 modified energy factor (MEF) and do not exceed a 8.0 water consumption factor(WCF).

$125 for residential top-loading models manufactured in 2008 or 2009 which meet orexceed a 1.8 MEF and do not exceed a 7.5 WCF.

$150 for a residential or commercial models manufactured in 2008, 2009, or 2010which meet or exceed a 2.0 MEF and does not exceed a 6.0 WCF.

$250 for residential or commercial models manufactured in 2008, 2009, or 2010 whichmeet or exceed a 2.2 MEF and do not exceed a 4.5 WCF.

Refrigerators

$50 for models manufactured in 2008 which are between 20% and 22.9% moreefficient than the 2001 energy conservation standards.

$75 for models manufactured in 2008 or 2009 which are between 23% and 24.9%more efficient than the 2001 energy conservation standards.

$100 for models manufactured in 2008, 2009, or 2010 which are between 25% and29.9% more efficient than the 2001 energy conservation standards.

$200 for models manufactured in 2008, 2009, or 2010 which are at least 30% moreefficient than the 2001 energy conservation standards.

Each manufacturer is limited to a total of $75 million for all credits under this provision.However, refrigerators manufactured in 2008, 2009, or 2010 which consume at least 30% lessenergy than the 2001 energy conservation standards will not add to the aggregate credit amountand have no separate credit limit. Residential and commercial clothes washers manufactured in2008, 2009 or 2010 which meet or exceed a 2.2 MEF and do not exceed a 4.5 WCF also willnot add to the aggregate limit and have no separate credit limit.

IRS Form 8909 is available here. For more information on ualif in roducts, visit the
http://www.energystar.gov/index.cfm?c=products.pr_tax_credits#7http://www.irs.gov/pub/irs-pdf/f8909.pdf


12/58

Energy Star web site.

Contact:


Energy-Efficient New Homes Tax Credit for Home Builders


State: Federal

Eligible EfficiencyTechnologies: Comprehensive Measures/Whole Building

Applicable Sectors: Builder/Developer

Amount: $1,000 - $2,000 (depends on energy savings and home type)

Maximum Incentive: $2,000

Web Site: http://www.irs.gov/businesses/small/industries/article/0,,id=155445,00.html

Authority 1: 26 USC 45L

Date Enacted: 8/8/2005 (amended 2008)



Authority 2: H.R. 1424: Div. B, Sec. 304 (The Energy Improvement and ExtensionAct of 2008)


http://thomas.loc.gov/cgi-bin/query/z?c110:H.R.1424.enr:http://www.thomas.gov/cgi-bin/query/z?c109:H.R.6111.ENR:http://www.thomas.gov/cgi-bin/query/z?c109:H.R.6111.ENR:http://thomas.loc.gov/cgi-bin/query/z?c110:H.R.1424.enr:http://thomas.loc.gov/cgi-bin/query/z?c110:H.R.1424.enr:http://www.dsireusa.org/documents/Incentives/US41F.htmhttp://www.irs.gov/businesses/small/industries/article/0,,id=155445,00.htmlhttp://www.irs.gov/businesses/small/industries/article/0,,id=155445,00.htmlhttp://www.irs.gov/businesses/small/industries/article/0,,id=155445,00.htmlhttp://www.irs.gov/http://www.energystar.gov/index.cfm?c=products.pr_tax_credits#7http://www.irs.gov/pub/irs-pdf/f8909.pdf


13/58

Summary:The federal Energy Policy Act of 2005 established tax credits of up to $2,000 for builders of allnew energy-efficient homes, including manufactured homes constructed in accordance with theFederal Manufactured Homes Construction and Safety Standards. Initially scheduled to expire

at the end of 2007, the tax credit was extended through 2008 by Section 205 of the Tax Reliefand Health Care Act of 2006 (H.R. 6111), and then extended again through December 31,2009 by Section 304 ofThe Energy Improvement and Extension Act of 2008 (H.R. 1424).

The home qualifies for the credit if: It is located in the United States; Its construction is substantially completed after August 8, 2005; It meets the energy saving requirements outlined in the statute; and It is acquired from the eligible contractor after December 31, 2005, and before January

1, 2010, for use as a residence.Energy Saving Requirements

Site-built homes qualify for a $2,000 credit if they are certified to reduce heating and coolingenergy consumption by 50% relative to the International Energy Conservation Code standardand meet minimum efficiency standards established by the Department of Energy. Buildingenvelope component improvements must account for at least one-fifth of the reduction inenergy consumption.

Manufactured homes qualify for a $2,000 credit if they conform to Federal ManufacturedHome Construction and Safety Standards and meet the energy savings requirements of site-built homes described above.

Manufactured homes qualify for a $1,000 credit if they conform to Federal Manufactured

Home Construction and Safety Standards and reduce energy consumption by 30% relative tothe International Energy Conservation Code standard. In this case, building envelopecomponent improvements must account for at least one-third of the reduction in energyconsumption. Alternatively, manufactured homes qualify if they meet Energy Star LabeledHomes requirements.

CertificationThe Internal Revenue Service (IRS) has issued guidance to provide information about thecertification process that a builder must complete to qualify for the credit. The guidance alsoprovides for a public list of software programs that may be used in calculating energyconsumption for purposes of obtaining a certification.

IRS Notice 2006-27 provides guidance for the credit for building energy-efficient homes otherthan manufactured homes. IRS Notice 2006-28 provides guidance for the credit for buildingenergy-efficient manufactured homes. Click here to access IRS Form 8908: Energy EfficientHome Credit.

For more information on this and other energy efficiency tax credits, visit the Energy Star website.
http://www.energystar.gov/index.cfm?c=products.pr_tax_credits#7http://www.energystar.gov/index.cfm?c=products.pr_tax_credits#7http://www.irs.gov/pub/irs-pdf/f8908.pdfhttp://www.irs.gov/pub/irs-drop/n-06-28.pdfhttp://www.irs.gov/pub/irs-drop/n-06-27.pdfhttp://thomas.loc.gov/cgi-bin/query/z?c110:H.R.1424.enr:http://www.thomas.gov/cgi-bin/query/z?c109:H.R.6111.ENR:http://www.thomas.gov/cgi-bin/query/z?c109:H.R.6111.ENR:


14/58

Contact:


Renewable Electricity Production Tax Credit (PTC)


State: Federal


Landfill Gas, Wind, Biomass, Hydroelectric, Geothermal Electric,Municipal Solid Waste, Hydrokinetic Power (i.e., Flowing Water),Anaerobic Digestion, Small Hydroelectric, Tidal Energy, WaveEnergy, Ocean Thermal

Applicable Sectors: Commercial, Industrial

Amount: 2.1/kWh for wind, geothermal, closed-loop biomass; 1.1/kWh forother eligible technologies. Generally applies to first 10 years ofoperation.

Eligible System Size: Marine and Hydrokinetic: Minimum capacity of 150 kWAgricultural Livestock Waste: Minimum capacity of 150 kW

Web Site: http://www.irs.gov/pub/irs-pdf/f8835.pdf


Date Enacted: 1992 (subsequently amended)


eligible for the federal renewable electricity production tax credit (PTC) to take the federal

business energy investment tax credit(ITC) or to receive agrantfrom the U.S. Treasury

Department instead of taking the PTC for new installations. The new law also allows

taxpayers eligible for the business ITC to receive agrantfrom the U.S. Treasury

Department instead of taking the business ITC for new installations. The Treasury

Department issuedNotice 2009-52 in June 2009, giving limited guidance on how to take the

federal business energy investment tax credit instead of the federal renewable electricity

roduction tax credit. The Treasur De artment will issue more extensive uidance at a
http://thomas.loc.gov/cgi-bin/query/z?c110:H.R.1424.enr:http://www.irs.gov/pub/irs-drop/n-09-52.pdfhttp://www.dsireusa.org/library/includes/incentive2.cfm?Incentive_Code=US53F&State=federal%C2%A4tpageid=1&ee=1&re=1http://www.dsireusa.org/library/includes/incentive2.cfm?Incentive_Code=US53F&State=federal%C2%A4tpageid=1&ee=1&re=1http://www.dsireusa.org/library/includes/incentive2.cfm?Incentive_Code=US02F&State=federal%C2%A4tpageid=1&ee=1&re=1http://www.dsireusa.org/documents/Incentives/US13F.htmhttp://www.irs.gov/pub/irs-pdf/f8835.pdfhttp://www.irs.gov/


15/58

later time.

The federal renewable electricity production tax credit (PTC) is a per-kilowatt-hour tax creditfor electricity generated by qualified energy resources and sold by the taxpayer to an unrelatedperson during the taxable year. Originally enacted in 1992, the PTC has been renewed and

expanded numerous times, most recently by H.R. 1424 (Div. B, Sec. 101 & 102) in October2008 and again by H.R. 1 (Div. B, Section 1101 & 1102) in February 2009.

The October 2008 legislation extended the in-service deadlines for all qualifying renewabletechnologies; expanded the list of qualifying resources to include marine and hydrokineticresources, such as wave, tidal, current and ocean thermal; and made changes to the definitionsof several qualifying resources and facilities. The effective dates of these changes vary. Marineand hydrokinetic energy production is eligible as of the date the legislation was enacted(October 3, 2008), as is the incremental energy production associated with expansions ofbiomass facilities. A change in the definition of "trash facility" no longer requires that suchfacilities burn trash, and is also effective immediately. One further provision redefining the term

"non-hydroelectric dam," took effect December 31, 2008.

The February 2009 legislation revised the credit by: (1) extending the in-service deadline formost eligible technologies by three years (two years for marine and hydrokinetic resources);and (2) allowing facilities that qualify for the PTC to opt instead to take the federal businessenergy investment credit (ITC) or an equivalent cash grant from the U.S. Department ofTreasury. The ITC or grant for PTC-eligible technologies is generally equal to 30% of eligiblecosts.*

The tax credit amount is 1.5/kWh in 1993 dollars (indexed for inflation) for sometechnologies, and half of that amount for others. The rules governing the PTC vary by resource

and facility type. The table below outlines two of the most important characteristics of the taxcredit -- in-service deadline and credit amount -- as they apply to different facilities. The tableincludes changes made by H.R. 1, in February 2009, and the inflation-adjusted credit amountsare current for the 2009 calendar year. (See the history section below for information on priorrules.)

Resource TypeIn-ServiceDeadline

CreditAmount

WindDecember 31,2012

2.1/kWh

Closed-Loop Biomass December 31,2013

2.1/kWh

Open-Loop BiomassDecember 31,2013

1.1/kWh

Geothermal EnergyDecember 31,2013

2.1/kWh

Landfill GasDecember 31,

1.1/kWh
http://thomas.loc.gov/home/h1/Recovery_Bill_Div_B.pdfhttp://thomas.loc.gov/cgi-bin/query/z?c110:H.R.1424.enr:http://www.irs.gov/pub/irs-drop/n-09-52.pdfhttp://www.dsireusa.org/library/includes/incentive2.cfm?Incentive_Code=US53F&State=federal%C2%A4tpageid=1&ee=1&re=1


16/58

Municipal Solid WasteDecember 31,2013

1.1/kWh

Qualified HydroelectricDecember 31,2013

1.1/kWh

Marine and Hydrokinetic (150 kW orlarger)**

December 31,2013

1.1/kWh

The duration of the credit is generally 10 years after the date the facility is placed in service, butthere are two exceptions:

Open-loop biomass, geothermal, small irrigation hydro, landfill gas and municipal solidwaste combustion facilities placed into service after October 22, 2004, and beforeenactment of theEnergy Policy Act of 2005, on August 8, 2005, are only eligible for thecredit for a five-year period.

Open-loop biomass facilities placed in service before October 22, 2004, are eligible fora five-year period beginning January 1, 2005.

In addition, the tax credit is reduced for projects that receive other federal tax credits, grants,tax-exempt financing, or subsidized energy financing. The credit is claimed by completingForm 8835, "Renewable Electricity Production Credit," and Form 3800, "General BusinessCredit." For more information, contact IRS Telephone Assistance for Businesses at1-800-829-4933.

HistoryAs originally enacted by theEnergy Policy Act of 1992, the PTC expired at the end of 2001,and was subsequently extended in March 2002 as part of theJob Creation and WorkerAssistance Act of 2002 (H.R. 3090). The PTC then expired at the end of 2003 and was notrenewed until October 2004, as part of H.R. 1308, the Working Families Tax Relief Act of2004, which extended the credit through December 31, 2005. TheEnergy Policy Act of 2005(H.R. 6) modified the credit and extended it through December 31, 2007. In December 2006,the PTC was extended for yet another year -- through December 31, 2008 -- by the Tax Reliefand Health Care Act of 2006(H.R. 6111).

The American Jobs Creation Act of 2004 (H.R. 4520), expanded the PTC to include additionaleligible resources -- geothermal energy, open-loop biomass, solar energy, small irrigationpower, landfill gas and municipal solid waste combustion -- in addition to the formerly eligiblewind energy, closed-loop biomass, and poultry-waste energy resources. TheEnergy Policy Actof 2005 (EPAct 2005) further expanded the credit to certain hydropower facilities. As a resultof EPAct 2005, solar facilities placed into service after December 31, 2005, are no longereligible for this incentive. Solar facilities placed in-service during the roughly one-year windowin which solar was eligible are permitted to take the full credit (i.e., 2.1/kWh) for five years.

* Prior to H.R. 1, geothermal facilities were already eligible for a 10% tax credit under theenergy ITC (26 USC 48). However, the new legislation permits all PTC-eligibletechnologies, including geothermal electric facilities, to take a 30% tax credit (or grant) in lieuo the PTC. Recent uidance rom the IRS re ardin the Treasur rants in lieu o tax credits
http://www.irs.gov/pub/irs-pdf/f3800.pdfhttp://www.irs.gov/pub/irs-pdf/f8835.pdf


17/58

indicates that geothermal facilities that qualify for the PTC are eligible for either the 30%investment tax credit or the 10% tax credit, but not both. The window for the 30% tax creditruns through 2013, the in-service deadline for the PTC, while the 10% tax credit under thesection 48 ITC does not have an expiration date.

** H.R. 1424 added marine and hydrokinetic energy as eligible resources and removed "smallirrigation power" as an eligible resource effective October 3, 2008. However, the definition ofmarine and hydrokinetic energy encompasses the resources that would have formerly beendefined as small irrigation power facilities. Thus H.R. 1424 effectively extended the in-servicedeadline for small irrigation power facilities by 3 years, from the end of 2008 until the end of2011 (since extended again through 2013).

Contact:


Tribal Energy Program Grant

Last DSIRE Review: 08/19/2009Incentive Type: Federal Grant Program

State: Federal

Eligible EfficiencyTechnologies:

Clothes Washers, Refrigerators/Freezers, Water Heaters, Lighting,Lighting Controls/Sensors, Chillers, Furnaces, Boilers, Airconditioners, Programmable Thermostats, Energy Mgmt. Systems/Building Controls, Caulking/Weather-stripping, Duct/Air sealing,Building Insulation, Windows, Doors, Siding, Roofs, ComprehensiveMeasures/Whole Building, other energy efficiency improvements maybe eligible

Eligible Renewable/

Other Technologies:

Passive Solar Space Heat, Solar Water Heat, Solar Space Heat,

Photovoltaics, Wind, Biomass, Hydroelectric, Geothermal Electric,Geothermal Heat Pumps

Applicable Sectors: Tribal Government

Amount: Varies by solicitation

Maximum Incentive: Varies by solicitation

Web Site: http://www.eere.energy.gov/tribalenergy
http://www.eere.energy.gov/tribalenergyhttp://www.irs.gov/


18/58

Summary:The U.S. Department of Energy's (DOE) Tribal Energy Program promotes tribal energy

sufficiency, economic growth and employment on tribal lands through the development ofrenewable energy and energy efficiency technologies. The program provides financialassistance, technical assistance, education and training to tribes for the evaluation anddevelopment of renewable energy resources and energy efficiency measures.

DOE's Tribal Energy Program consists of program management through DOE headquarters,program implementation and project management through DOE's field offices, and technicalsupport through DOE laboratories. Program management for the Tribal Energy Program iscarried out by DOE's Weatherization and Intergovernmental Program, which providesprogrammatic direction and funding to DOE field offices for program implementation. DOE'sfield offices, specifically the Golden Field Office, issue solicitations and manage resulting

projects.

Program funding is awarded through a competitive process. Click here to view current programfunding opportunities.

Contact:

Lizana Pierce

U.S. Department of EnergyGolden Field Office1617 Cole Boulevard, MS 1501Golden, CO 80401Phone: (303) 275-4727Fax: (303) 275-4753E-Mail: [email protected] Site: http://www.eere.energy.gov/tribalenergy

U.S. Department of Treasury - Renewable Energy Grants

Last DSIRE Review: 07/31/2009
http://www.eere.energy.gov/tribalenergymailto:[email protected]://www.eere.energy.gov/tribalenergy/government_grants.cfm#Tribal


19/58

Incentive Type: Federal Grant Program

State: Federal


Solar Water Heat, Solar Space Heat, Solar Thermal Electric, SolarThermal Process Heat, Photovoltaics, Landfill Gas, Wind, Biomass,Hydroelectric, Geothermal Electric, Fuel Cells, Geothermal HeatPumps, Municipal Solid Waste, CHP/Cogeneration, Solar HybridLighting, Hydrokinetic, Anaerobic Digestion, Tidal Energy, WaveEnergy, Ocean Thermal, Microturbines

Applicable Sectors: Commercial, Industrial, Agricultural

Amount: 30% of property that is part of a qualified facility, qualified fuel cellproperty, solar property, or qualified small wind property10% of all other property

Maximum Incentive: $1,500 per 0.5 kW for qualified fuel cell property$200 per kW for qualified microturbine property50 MW for CHP property, with limitations for large systems

Terms: Grant applications must be submitted by 10/1/2011. Payment of grantwill be made within 60 days of the grant application date or the dateproperty is placed in service, whichever is later.

Web Site: http://www.treas.gov/recovery/1603.shtml

Authority 1: H.R. 1: Div. B, Sec. 1104 & 1603 (The American Recovery andReinvestment Act of 2009)



Authority 2: U.S. Department of Treasury: Grant Program Guidance



eligible for the federalbusiness energy investment tax credit(ITC) to take this credit or to

receive a grant from the U.S. Treasury Department instead of taking the business ITC for

new installations. The new law also allows taxpayers eligible for the renewable electricity

production tax credit(PTC) to receive a grant from the U.S. Treasury Department instead

of taking the PTC for new installations. (It does not allow taxpayers eligible for theresidential renewable energy tax creditto receive a grant instead of taking this credit.)

Taxpayers may not use more than one of these incentives. Tax credits allowed under the

ITC with respect to progress expenditures on eligible energy property will be recaptured if

the project receives a grant. The grant is not included in the gross income of the taxpayer.

TheAmerican Recovery and Reinvestment Act of 2009 (H.R. 1), enacted in February 2009,created a renewable energy grant program that will be administered by the U.S. Department of
http://www.treas.gov/recovery/1603.shtmlhttp://www.dsireusa.org/library/includes/incentive2.cfm?Incentive_Code=US37F&State=federal%C2%A4tpageid=1&ee=1&re=1http://www.dsireusa.org/library/includes/incentive2.cfm?Incentive_Code=US13F&State=federal%C2%A4tpageid=1&ee=1&re=1http://www.dsireusa.org/library/includes/incentive2.cfm?Incentive_Code=US13F&State=federal%C2%A4tpageid=1&ee=1&re=1http://www.dsireusa.org/library/includes/incentive2.cfm?Incentive_Code=US02F&State=federal%C2%A4tpageid=1&ee=1&re=1http://www.treas.gov/recovery/docs/guidance.pdfhttp://thomas.loc.gov/home/h1/Recovery_Bill_Div_B.pdfhttp://thomas.loc.gov/home/h1/Recovery_Bill_Div_B.pdfhttp://www.treas.gov/recovery/1603.shtml


20/58

.credit (ITC). In July 2009 the Department of Treasury issued documents detailing guidelinesfor the grants, terms and conditions and a sample application. There is an online applicationprocess, and applications are currently being accepted. See the program web site for moreinformation.

Grants are available to eligible property* placed in service in 2009 or 2010, or placed in serviceby the specified credit termination date,** if construction began in 2009 or 2010. Theguidelines include a "safe harbor" provision that sets the beginning of construction at the pointwhere the applicant has incurred or paid at least 5% of the total cost of the property, excludingland and certain preliminary planning activities. Below is a list of important program details asthey apply to each different eligible technology.

Solar. The grant is equal to 30% of the basis of the property for solar energy. Eligiblesolar-energy property includes equipment that uses solar energy to generate electricity,to heat or cool (or provide hot water for use in) a structure, or to provide solar processheat. Passive solar systems and solar pool-heating systems are noteligible. Hybridsolar-lighting systems, which use solar energy to illuminate the inside of a structure

using fiber-optic distributed sunlight, are eligible.

Fuel Cells. The grant is equal to 30% of the basis of the property for fuel cells. Thegrant for fuel cells is capped at $1,500 per 0.5 kilowatt (kW) in capacity. Eligibleproperty includes fuel cells with a minimum capacity of 0.5 kW that have an electricity-only generation efficiency of 30% or higher.

Small Wind Turbines. The grant is equal to 30% of the basis of the property for smallwind turbines. Eligible small wind property includes wind turbines up to 100 kW incapacity.

Qualified Facilities. The grant is equal to 30% of the basis of the property for qualifiedfacilities that produce electricity. Qualified facilities include wind energy facilities,closed-loop biomass facilities, open-loop biomass facilities, geothermal energyfacilities, landfill gas facilities, trash facilities, qualified hydropower facilities, andmarine and hydrokinetic renewable energy facilities.

Geothermal Heat Pumps. The grant is equal to 10% of the basis of the property forgeothermal heat pumps.

Microturbines. The grant is equal to 10% of the basis of the property formicroturbines. The grant for microturbines is capped at $200 per kW of capacity.Eligible property includes microturbines up to two megawatts (MW) in capacity thathave an electricity-only generation efficiency of 26% or higher.

Combined Heat and Power (CHP). The grant is equal to 10% of the basis of theproperty for CHP. Eligible CHP property generally includes systems up to 50 MW incapacity that exceed 60% energy efficiency, subject to certain limitations and reductionsfor large systems. The efficiency requirement does not apply to CHP systems that usebiomass for at least 90% of the s stem's ener source, but the rant ma be reduced
http://www.treas.gov/recovery/1603.shtml


21/58

for less-efficient systems.It is important to note that only tax-paying entities are eligible for this grant. Federal, state andlocal government bodies, non-profits, qualified energy tax credit bond lenders, and cooperativeelectric companies are not eligible to receive this grant. Partnerships or pass-thru entities for theorganizations described above are also not eligible to receive this grant, except in cases where

the ineligible party only owns an indirect interest in the applicant through a taxable Ccorporation. Grant applications must be submitted by October 1, 2011. The U.S. TreasuryDepartment will make payment of the grant within 60 days of the grant application date or thedate the property is placed in service, whichever is later.

* Definitions of eligible property types and renewable technologies can be found in the U.S.Code, Title 26, 45 and 48.

** Credit termination date of January 1, 2013, for wind; January 1, 2014, for closed-loopbiomass, open-loop biomass, landfill gas, trash, qualified hydropower, marine and

hydrokinetic; January 1, 2017, for fuel cells, small wind, solar, geothermal, microturbines,CHP and geothermal heat pumps.

Contact:

Grant InformationU.S. Department of Treasury1500 Pennsylvania Avenue, NW

Washington, DC 20220Phone: (202) 622-2000Fax: (202) 622-6415E-Mail: [email protected] Site: http://ww.treasury.gov

USDA - Rural Energy for America Program (REAP) Grants

http://ww.treasury.gov/mailto:[email protected]


22/58

Incentive Type: Federal Grant Program

State: Federal


Eligible Renewable/Other Technologies: Solar Water Heat, Solar Space Heat, Solar Thermal Electric,Photovoltaics, Wind, Biomass, Hydroelectric, RenewableTransportation Fuels, Geothermal Electric, Geothermal Heat Pumps,CHP/Cogeneration, Hydrogen, Direct-Use Geothermal, AnaerobicDigestion, Small Hydroelectric, Tidal Energy, Wave Energy, OceanThermal, Renewable Fuels, Fuel Cells using Renewable Fuels,Microturbines

Applicable Sectors: Commercial, Schools, Local Government, State Government, TribalGovernment, Rural Electric Cooperative, Agricultural, Public PowerEntities

Amount: Varies

Maximum Incentive: 25% of project cost

Web Site: http://www.rurdev.usda.gov/rbs/busp/bprogs.htm



Date Effective: FY 2003

Summary:

NOTE: The U.S. Department of Agriculture's Rural Development issues periodicNotices of Solicitation of Applications for the Rural Energy for America Program

(REAP). The deadline to apply for grants and loan guarantees under the most recent

solicitation was July 31, 2009. Grants and loan guarantees will be awarded for

investments in renewable energy systems, energy efficiency improvements and

renewable energy feasibility studies.

The Food, Conservation, and Energy Act of 2008 (H.R. 2419), enacted by Congress in May2008, converted the federal Renewable Energy Systems and Energy Efficiency ImprovementsProgram,* into the Rural Energy for America Program (REAP). Similar to its predecessor, theREAP promotes energy efficiency and renewable energy for agricultural producers and rural

small businesses through the use of (1) grants and loan guarantees for energy efficiencyimprovements and renewable energy systems, and (2) grants for energy audits and renewableenergy development assistance. Congress has allocated funding for the new program in thefollowing amounts: $55 million for FY 2009, $60 million for FY 2010, $70 million for FY2011, and $70 million for FY 2012. REAP is administered by the U.S. Department ofAgriculture (USDA).

Of the total REAP funding available, 96% is dedicated to grants and loan guarantees for energy
http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=110_cong_bills&docid=f:h2419enr.txt.pdfhttp://www.dsireusa.org/documents/Incentives/FED46F1.htmhttp://www.rurdev.usda.gov/rbs/busp/bprogs.htm


23/58

efficiency improvements and renewable energy systems. These incentives are available toagricultural producers and rural small businesses to purchase renewable energy systems(including systems that may be used to produce and sell electricity), to make energy efficiencyimprovements, and to conduct relevant feasibility studies. Eligible renewable energy projectsinclude wind, solar, biomass and geothermal; and hydrogen derived from biomass or water

using wind, solar or geothermal energy sources. These grants are limited to 25% of a proposedproject's cost, and a loan guarantee may not exceed $25 million. The combined amount of agrant and loan guarantee may not exceed 75% of the projects cost. In general, a minimum of20% of the funds available for these incentives will be dedicated to grants of $20,000 or less.The USDA likely will announce the availability of funding for this component of REAPthrough a Notice of Funds Availability (NOFA).

The USDA will also make competitive grants to eligible entities to provide assistance toagricultural producers and rural small businesses to become more energy efficient and to userenewable energy technologies and resources. These grants are generally available to stategovernment entities, local governments, tribal governments, land-grant colleges and

universities, rural electric cooperatives and public power entities, and other entities, asdetermined by the USDA. These grants may be used for conducting and promoting energyaudits; and for providing recommendations and information related to energy efficiency andrenewable energy. Of the total REAP funding available, 4% is dedicated to competitive grantsto provide assistance to agricultural producers and rural small businesses.

* The Renewable Energy Systems and Energy Efficiency Improvements Program was createdby the USDA pursuant to Section 9006 of the 2002 federal Farm Security and RuralInvestment Act of 2002. Funding in the amount of $23 million per year was appropriated foreach fiscal year from FY 2003-2007. In March 2008, the USDA announced that it would

accept $220.9 million in applications for grants, loan guarantees, and loan/grant combinationpackages under the Renewable Energy Systems and Energy Efficiency ImprovementsProgram. The application deadline was June 16, 2008.

Clean Renewable Energy Bonds (CREBs)



24/58

Incentive Type: Federal Loan Program

State: Federal


Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass,Hydroelectric, Geothermal Electric, Municipal Solid Waste,Hydrokinetic Power, Anaerobic Digestion, Tidal Energy, WaveEnergy, Ocean Thermal

Applicable Sectors: Local Government, State Government, Tribal Government, MunicipalUtility, Rural Electric Cooperative

Amount: Varies

Terms: Certain terms for "new" CREBs differ from those for priorallocations. See IRS Notice 2009-33 for details.

Web Site: http://www.irs.gov/irb/2007-14_IRB/ar17.html

Authority 1: 26 USC 54 (Old CREBs)



Authority 2: 26 USC 54A (New CREBs)



Authority 3: 26 USC 54C (New CREBs)



Authority 4: IRS Notice 2009-33

Date Effective: 04/07/2009Expiration Date: 08/04/2009

Summary:Note: The IRS is not currently accepting applications for CREB allocations. Readers

should also note that the terms "new" and "old" CREBs are used in the following

summary to distinguish between prior CREB allocations and the new CREB authorizations

made by the U.S. Congress in 2008 and 2009. The use of the term "new CREBs" has legal

significance in that new CREBs authorized under 26 USC 54A and 54C have

substantially different rules than prior CREB allocations authorized under 26 USC 54.

Clean renewable energy bonds (CREBs) may be used by certain entities -- primarily in thepublic sector -- to finance renewable energy projects. The list of qualifying technologies isgenerally the same as that used for the federal renewable energy production tax credit (PTC).CREBs may be issued by electric cooperatives, government entities (states, cities, counties,territories, Indian tribal governments or any political subdivision thereof), and by certainlenders. CREBs are issued -- theoreticall -- with a 0% interest rate.* The borrower a s back
http://thomas.loc.gov/home/h1/Recovery_Bill_Div_B.pdfhttp://thomas.loc.gov/home/h1/Recovery_Bill_Div_B.pdfhttp://thomas.loc.gov/cgi-bin/query/z?c110:H.R.1424.enr:http://www.irs.gov/pub/irs-drop/n-09-33.pdfhttp://www.dsireusa.org/documents/Incentives/US45Fc.htmhttp://www.dsireusa.org/documents/Incentives/US45Fb.htmhttp://www.dsireusa.org/documents/Incentives/US45f.htmhttp://www.irs.gov/irb/2007-14_IRB/ar17.html


25/58

only the principal of the bond, and the bondholder receives federal tax credits in lieu of thetraditional bond interest.

The Energy Improvement and Extension Act of 2008 (Div. A, Sec. 107) allocated $800 millionfor new Clean Renewable Energy Bonds (CREBs). In February 2009, the American Recovery

and Reinvestment Act of 2009 (Div. B, Sec. 1111) allocated an additional $1.6 billion for newCREBs, for a total new CREB allocation of $2.4 billion. The Energy Improvement andExtension Act of 2008 also extended the deadline for previously reserved allocations ("oldCREBs") until December 31, 2009, and addressed several provisions in the existing law thatpreviously limited the usefulness of the program for some projects. A separate section of thelaw extended CREBs eligibility to marine energy and hydrokinetic power projects.

Participation in the program is limited by the volume of bonds allocated by Congress for theprogram. Participants must first apply to the Internal Revenue Service (IRS) for a CREBsallocation, and then issue the bonds within a specified time period. The new CREBs allocationtotaling $2.4 billion does not have a defined expiration date under the law; however, the recent

IRS solicitation for new applications requires the bonds to be issued within 3 years after theapplicant receives notification of an approved allocation (see History section below forinformation on previous allocations). Public power providers, governmental bodies, andelectric cooperatives are each reserved an equal share (33.3%) of the new CREBs allocation.The tax credit rate is set daily by the U.S. Treasury Department. Under past allocations, thecredit could be taken quarterly on a dollar-for-dollar basis to offset the tax liability of thebondholder. However, under the new CREBs allocation, the credit has been reduced to 70% ofwhat it would have been otherwise. Other important changes are described in IRS Notice2009-33.

CREBs differ from traditional tax-exempt bonds in that the tax credits issued through CREBs

are treated as taxable income for the bondholder. The tax credit may be taken each year thebondholder has a tax liability as long as the credit amount does not exceed the limits establishedby the federalEnergy Policy Act of 2005. Treasury rates for prior CREB allocations, or "old"CREBs are available here, while rates for new CREBs and other qualified tax credit bonds areavailable here.

In April 2009, the IRS issued Notice 2009-33, which solicited applications for the new CREBallocation and provided interim guidance on certain program rules and changes from priorCREB allocations. The expiration date for new CREB applications under this solicitation wasAugust 4, 2009. Further guidance on CREBs is available in IRS Notices 2006-7 and 2007-26to the extent that the program rules were not modified by 2008 and 2009 legislation. In October

2009, the Department of Treasury announced the allocation of $2.2 billion in new CREBs for805 projects across the country. It remains to be seen if the IRS will issue new fundingannouncements for the remaining $200 million in new CREBs, or for old CREB allocationswhich are not issued by the December 31, 2009 deadline.

HistoryThe federalEnergy Policy Act of 2005 (EPAct 2005) established Clean Energy RenewableBonds (CREBs) as a financing mechanism for public sector renewable energy projects. This
http://www.ustreas.gov/press/releases/tg333.htmhttps://www.treasurydirect.gov/GA-SL/SLGS/selectQTCDate.htmhttps://www.treasurydirect.gov/GA-SL/SLGS/selectCREBDate.htmhttp://thomas.loc.gov/home/h1/Recovery_Bill_Div_B.pdfhttp://thomas.loc.gov/home/h1/Recovery_Bill_Div_B.pdfhttp://thomas.loc.gov/cgi-bin/query/z?c110:H.R.1424.enr:


26/58

legislation originally allocated 800 million of tax credit bonds to be issued between January 1,2006, and December 31, 2007. Following the enactment of the federal Tax Relief and HealthCare Act of 2006, the IRS made an additional $400 million in CREBs financing available for2008 through Notice 2007-26.

In November 2006, the IRS announced that the original $800 million allocation had beenreserved for a total of 610 projects. The additional $400 million (plus surrendered volume fromthe previous allocation) was allocated to 312 projects in February 2008. Of the $1.2 billion totalof tax-credit bond volume cap allocated to fund renewable-energy projects, state and localgovernment borrowers were limited to $750 million of the volume cap, with the rest reservedfor qualified municipal or cooperative electric companies.

For further information on CREBs, contact Zoran Stojanovic or Timothy Jones of the IRSOffice of Associate Chief Counsel at (202) 622-3980. Questions on recent IRS Notice2009-33 can be directed to Janae Lemley at (636) 255-1202.

* In practice, for a variety of reasons, bond issuers have sometimes had to issue the bonds ata discount or make supplemental interest payments in order to find a buyer.

Contact:

Public Information - IRSU.S. Internal Revenue Service

1111 Constitution Avenue, N.W.Washington, DC 20224Phone: (800) 829-1040Web Site: http://www.irs.gov

Energy-Efficient Mortgages

Last DSIRE Review: 08/03/2009Incentive Type: Federal Loan Program

State: Federal



Passive Solar Space Heat, Solar Water Heat, Solar Space Heat,Photovoltaics, Daylighting

Applicable Sectors: Residential

Web Site: http://www.resnet.us/ratings/mortgages
http://www.resnet.us/ratings/mortgageshttp://www.irs.gov/


27/58

Summary:Homeowners can take advantage of energy efficient mortgages (EEM) to finance a variety ofenergy efficiency measures, including renewable energy technologies, in a new or existing

home. The U.S. federal government supports these loans by insuring them through FederalHousing Authority (FHA) or Veterans Affairs (VA) programs. This allows borrowers whomight otherwise be denied loans to pursue energy efficiency improvements, and it secureslenders against loan default.

The federal Energy Star program has a partnership program for lenders whereby lenders whoprovide EEMs to borrowers may become Energy Star lender partners. These EEMs may ormay not be used to purchase an Energy Star qualified home. Becoming a partner allows lendersto utilize the Energy Star brand to promote themselves as Energy Star partners offering EEMs.To become a lender partner lenders must first provide proof that they know how to writeEEMs. To maintain their partnership benefits, lenders must write a certain number of EEMs per

year. Energy Star does not have a lender certification program or process. Click here for moreinformation about Energy Star's lender partnership program. As of August 2008, the federalEnergy Star program lists 61 private lenders who offer homebuyer assistance, HERSassistance, special financing, and other assistance to applicants buying homes with the EnergyStar rating. Energy Star requires that its lender partners provide EEMs to qualified borrowersregardless of whether it is an FHA EEM, Fannie Mae EEM, or VA EEM.

FHA Energy Efficient MortgagesThe FHA allows lenders to add up to 100% of energy efficiency improvements to an existingmortgage loan with certain restrictions. FHA mortgage limits vary by county, state and thenumber of units in a dwelling. See www.fha.com/lending_limits.cfm for more details. These

mortgages were previously limited to $8,000. In June 2009, HUD issued Mortgagee Letter2009-18 which announced the removal of the dollar cap. The maximum amount of the portionof an energy efficient mortgage allowed for energy improvements is now the lesser of 5% of:

The value of the property, 115% of the median area price of a single-family dwelling, or 150% of the Freddie Mac conforming loan limit

Loan amounts may not exceed the projected savings of the energy efficiency improvements.These loans may be combined with FHA 203 (h) mortgages available to victims ofpresidentially-declared disasters and with financing offered through the FHA 203 (k)rehabilitation program. FHA loan limits do not apply to the EEM. Homebuyers must submit aHome Energy Rating (HER), contractor bids, and a FHA B Worksheet. This process may

become streamlined in 2009 as a result of the Housing and Economic Recovery Act of 2008,which requires HUD to report to congress with ways to remove the administrative barriers andincrease consumer participation and awareness of these financing options.

Presently, up to $200 of the cost of the HER may be included in the mortgage, and borrowersmay include closing costs and the up-front mortgage insurance premium in the total cost of theloan. The loan is available to anyone who meets the income requirements for FHAs Section203 (b), provided the applicant can meet the monthly mortgage payments. New and existing
http://www.hud.gov/offices/hsg/sfh/eem/energy-r.cfmhttp://www.hud.gov/offices/hsg/sfh/eem/energy-r.cfmhttp://www.fha.com/energy_efficient.cfmhttp://www.fha.com/energy_efficient.cfmhttp://www.fha.com/energy_efficient.cfmhttp://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/09-18ml.dochttp://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/09-18ml.dochttp://www.fha.com/lending_limits.cfmhttp://www.energystar.gov/index.cfm?c=bldrs_lenders_raters.c=bldrs_lenders_raters.c=bldrs_lenders_raters.pt_lender_benefits


28/58

owner-occup e omes o up to two un ts qua y or t s oan. ooperat ve un ts are noteligible. Homebuyers should submit applications to their local HUD Field Office through anFHA-approved lending institution, or they can apply directly online at www.fha.com/energy_efficient.cfm. See also www.hud.gov/offices/hsg/sfh/eem/energy-r.cfm.

Department of Veterans Affairs (VA) Energy Efficient MortgagesThe VA insures EEMs to be used in conjunction with VA loans either for the purchase ofexisting homes or for refinancing loans secured by the dwelling. Homebuyers may borrow upto $3,000 if only documentation of improvement costs or contractor bids is submitted, or up to$6,000 if the projected energy savings are greater than the increase in mortgage payments.Loans may exceed this amount at the discretion of the VA. Applicants may not include the costof their own labor in the total amount. No additional home appraisal is needed, but applicantsmust submit a HER, contractor bids and certain other documentation. The VA insures 50% ofthe loan if taken by itself, but it may insure less if the total value of the mortgage exceeds acertain amount.

This mortgage is available to qualified military personnel, reservists and veterans. (Seewww.homeloans.va.gov/elig2.htm for more details). Applicants should secure a certificate ofeligibility from their local lending office and submit it to a VA-approved private lender. If theloan is approved, the VA guarantees the loan when it is closed.

Conventional EEMsConventional mortgages are not backed by a federal agency. Private lenders sell loans to FannieMae and Freddie Mac, which in turn allow homebuyers to borrow up to 15% of an existinghomes appraised value for improvements documented by a HER.

Fannie Mae also lends up to 5% for Energy Star new homes. Fannie Mae EEMs are available

to single-family, owner-occupied units, and Fannie Mae provides EEMs to those whoseincome might otherwise disqualify them from receiving the loans by allowing approved lendersto adjust borrowers debt-to-income ratio by 2%. The value of the improvements isimmediately added to the total appraised value of the home.

Freddie Mac offers EEMs for one- to four-unit dwellings and also helps raise the effectiveincome of the borrower to qualifying levels by allowing lenders to increase the borrowersincome by a dollar amount equal to the estimated energy savings. Any energy efficiencyimprovements can qualify, and these mortgages can be combined with both fixed-rate andadjustable-rate mortgages. Borrowers should apply directly to the lender. Seewww.natresnet.org/resources/lender/default.htm for more details.

Qualified Energy Conservation Bonds (QECBs)

http://www.resnet.us/ratings/mortgages/freddiemac/summary.htmhttp://www.homeloans.va.gov/elig2.htmhttp://www.hud.gov/offices/hsg/sfh/eem/energy-r.cfmhttp://www.hud.gov/offices/hsg/sfh/eem/energy-r.cfmhttp://www.fha.com/energy_efficient.cfmhttp://www.fha.com/energy_efficient.cfmhttp://www.fha.com/energy_efficient.cfm


29/58

Incentive Type: Federal Loan Program

State: Federal


Eligible Renewable/Other Technologies: Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass,Hydroelectric, Geothermal Electric, Municipal Solid Waste,Hydrokinetic Power, Anaerobic Digestion, Tidal Energy, WaveEnergy, Ocean Thermal

Applicable Sectors: Local Government, State Government, Tribal Government

Amount: Varies

Authority 1: 26 USC 54A



Authority 2: 26 USC 54D



Authority 3: IRS Notice 2009-29

https://www.treasurydirect.gov/govt/rates/irs/rates_qtcb.htmhttp://www.dsireusa.org/library/includes/incentive2.cfm?Incentive_Code=US45F&State=federal%C2%A4tpageid=1&ee=1&re=1http://www.irs.gov/pub/irs-drop/n-09-29.pdfhttp://www.dsireusa.org/documents/Incentives/US51Fb.htmhttp://www.dsireusa.org/documents/Incentives/US51F.htm


30/58

Summary:TheEnergy Improvement and Extension Act of 2008, enacted in October 2008, authorized theissuance of Qualified Energy Conservation Bonds (QECBs) that may be used by state, localand tribal governments to finance certain types of energy projects. QECBs are qualified tax

credit bonds, and in this respect are similar to new Clean Renewable Energy Bonds or CREBs.

The October 2008 enabling legislation set a limit of $800 million on the volume of energyconservation tax credit bonds that may be issued by state and local governments. However, TheAmerican Recovery and Reinvestment Act of 2009, enacted in February 2009, expanded theallowable bond volume to $3.2 billion. In April 2009, the IRS issued Notice 2009-29providing interim guidance on how the program will operate and how the bond volume will beallocated.

The advantage of these bonds is that they are issued -- theoretically -- with a 0% interest rate.

The borrower pays back only the principal of the bond, and the bondholder receives federal taxcredits in lieu of the traditional bond interest. The tax credit may be taken quarterly to offset thetax liability of the bondholder. The tax credit rate is set daily by the U.S. Treasury Department;however, energy conservation bondholders will receive only 70% of the full rate set by theTreasury Department under 26 USC 54A. Credits exceeding a bondholder's tax liability maybe carried forward to the succeeding tax year, but cannot be refunded. Energy conservationbonds differ from traditional tax-exempt bonds in that the tax credits issued through theprogram are treated as taxable income for the bondholder. QECB rates are available here.

In contrast to CREBs, QECBs are not subject to a U.S. Department of Treasury application andapproval process. Bond volume is instead allocated to each state based on the state's percentage

of the U.S. population as of July 1, 2008. Each state is then required to allocate a portion of itsallocation to "large local governments" within the state based on the local government'spercentage of the state's population. Large local governments are defined as municipalities andcounties with populations of 100,000 or more. Large local governments may reallocate theirdesignated portion back to the state if they choose to do so. IRS Notice 2009-29 contains a listof the QECB allocations for each state and U.S. territory.

The definition of "qualified energy conservation projects" is fairly broad and contains elementsrelating to energy efficiency capital expenditures in public buildings; renewable energyproduction; various research and development applications; mass commuting facilities thatreduce energy consumption; several types of energy related demonstration projects; and public

energy efficiency education campaigns (see H.R. 1424 for additional details). Renewableenergy facilities that are eligible for CREBs are also eligible for QECBs.

For more information on QECBs, contact Timothy Jones or David White of the IRS Office ofAssociate Chief Counsel at (202) 622-3980.
https://www.treasurydirect.gov/govt/rates/irs/rates_qtcb.htmhttp://www.dsireusa.org/library/includes/incentive2.cfm?Incentive_Code=US45F&State=federal%C2%A4tpageid=1&ee=1&re=1


31/58

Contact:

Public Information - IRS

U.S. Internal Revenue Service1111 Constitution Avenue, N.W.Washington, DC 20224Phone: (800) 829-1040Web Site: http://www.irs.gov

U.S. Department of Energy - Loan Guarantee Program


State: Federal



Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaics,Wind, Hydroelectric, Renewable Transportation Fuels, GeothermalElectric, Fuel Cells, Manufacturing Facilities, Daylighting, TidalEnergy, Wave Energy, Ocean Thermal, Biodiesel

Applicable Sectors: Commercial, Industrial, Nonprofit, Schools, Local Government, StateGovernment, Agricultural, Institutional, Any non-federal entity

Amount: Varies. Program focuses on projects with total project costs over $25million.

Maximum Incentive: None stated

Terms: Full repayment is required over a period not to exceed the lesser of 30years or 90% of the projected useful life of the physical asset to befinanced

Web Site: http://www.lgprogram.energy.gov

Authority 1: 42 USC 16511 et seq.

Authority 2: 10 CFR 609
http://www.lgprogram.energy.gov/lgfinalrule.pdfhttp://www.dsireusa.org/documents/Incentives/US48F.htmhttp://www.lgprogram.energy.gov/http://www.irs.gov/


32/58

Summary:Innovative Technology Loan Guarantee Program:Title XVII of the federalEnergy Policy Act of 2005 (EPAct 2005) authorized the U.S.

Department of Energy (DOE) to issue loan guarantees for projects that "avoid, reduce orsequester air pollutants or anthropogenic emissions of greenhouse gases; and employ new orsignificantly improved technologies as compared to commercial technologies in service in theUnited States at the time the guarantee is issued." The loan guarantee program has beenauthorized to offer more than $10 billion in loan guarantees for energy efficiency, renewableenergy and advanced transmission and distribution projects.

DOE actively promotes projects in three categories: (1) manufacturing projects, (2) stand-aloneprojects, and (3) large-scale integration projects that may combine multiple eligible renewableenergy, energy efficiency and transmission technologies in accordance with a stageddevelopment scheme. Under the original authorization, loan guarantees were intended to

encourage early commercial use of new or significantly improved technologies in energyprojects. The loan guarantee program generally does not support research and developmentprojects.

In July 2009, the U.S. DOE issued a new solicitation for projects that employ innovativeenergy efficiency, renewable energy, and advanced transmission and distribution technologies.Proposed projects must fit within the criteria for "New or Significantly ImprovedTechnologies" as defined in 10 CFR 609. The solicitation provides for a total of $8.5 billion infunding and is to remain open until that amount is fully obligated. The initial due date forapplicants was September 16, 2009.

Temporary Loan Guarantee Program:The American Recovery and Reinvestment Act of 2009 (ARRA) (H.R. 1), enacted in February2009, extended the authority of the DOE to issue loan guarantees and appropriated $6 billionfor this program. Under this act, the DOE may enter into guarantees until September 30, 2011.The act amended EPAct 2005 by adding a new section defining eligible technologies for newloan guarantees. Eligible projects include renewable energy projects that generate electricity orthermal energy and facilities that manufacture related components, electric power transmissionsystems, and innovative biofuels projects. Funding for biofuels projects is limited to $500million. Davis-Bacon wage requirements apply to any project receiving a loan guarantee.

In October 2009, the U.S. DOE issued a new solicitation for traditional renewable energy

generation projects. The solicitation is funded with $750 million in ARRA funding and isexpected to support as much as $4 to 8 billion in lending to eligible projects. The initial deadlinefor submissions under this solicitation is November 23, 2009.


33/58

Contact:

Public Information - DOEU.S. Department of Energy1000 Independence Avenue, SWWashington , DC 20585-0121

Phone: (202) 586-8336E-Mail: [email protected] Site: http://www.lgprogram.energy.gov

USDA - Rural Energy for America Program (REAP) Loan Guarantees


State: Federal

Eligible Efficiency

Technologies: Yes; specific technologies not identifiedEligible Renewable/Other Technologies:

Solar Water Heat, Solar Space Heat, Solar Thermal Electric,Photovoltaics, Wind, Biomass, Hydroelectric, RenewableTransportation Fuels, Geothermal Electric, Geothermal Heat Pumps,CHP/Cogeneration, Hydrogen, Direct-Use Geothermal, AnaerobicDigestion, Small Hydroelectric, Tidal Energy, Wave Energy, OceanThermal, Renewable Fuels, Fuel Cells using Renewable Fuels,Microturbines

Applicable Sectors: Commercial, Agricultural

Amount: Varies

Maximum Incentive: $25 million per loan guaranteeWeb Site: http://www.rurdev.usda.gov/rbs/busp/bprogs.htm



Date Effective: FY 2003

Summary:NOTE: The U.S. Department of Agriculture's Rural Development has issued a Notice of

Solicitation of Applications for the Rural Energy for America Program (REAP). Thedeadline to apply for grants and loan guarantees under this solicitation is July 31, 2009.

Grants and loan guarantees will be awarded for investments in renewable energy

systems, energy efficiency improvements and renewable energy feasibility studies.

The Food, Conservation, and Energy Act of 2008 (H.R. 2419), enacted by Congress in May2008, converted the federal Renewable Energy Systems and Energy Efficiency ImprovementsProgram,* into the Rural Energy for America Program (REAP). Similar to its predecessor, the
http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=110_cong_bills&docid=f:h2419enr.txt.pdfhttp://www.dsireusa.org/documents/Incentives/FED46F.htmhttp://www.rurdev.usda.gov/rbs/busp/bprogs.htmhttp://www.lgprogram.energy.gov/mailto:[email protected]


34/58

REAP promotes energy efficiency and renewable energy for agricultural producers and ruralsmall businesses through the use of (1) grants and loan guarantees for energy efficiencyimprovements and renewable energy systems, and (2) grants for energy audits and renewableenergy development assistance. Congress has allocated funding for the new program in thefollowing amounts: $55 million for FY 2009, $60 million for FY 2010, $70 million for FY

2011, and $70 million for FY 2012. REAP is administered by the U.S. Department ofAgriculture (USDA).

Of the total REAP funding available, 96% is dedicated to grants and loan guarantees for energyefficiency improvements and renewable energy systems. These incentives are available toagricultural producers and rural small businesses to purchase renewable energy systems(including systems that may be used to produce and sell electricity), to make energy efficiencyimprovements, and to conduct relevant feasibility studies. Eligible renewable energy projectsinclude wind, solar, biomass and geothermal; and hydrogen derived from biomass or waterusing wind, solar or geothermal energy sources. These grants are limited to 25% of a proposedproject's cost, and a loan guarantee may not exceed $25 million. The combined amount of a

grant and loan guarantee may not exceed 75% of the projects cost. In general, a minimum of20% of the funds available for these incentives will be dedicated to grants of $20,000 or less.The USDA likely will announce the availability of funding for this component of REAPthrough a Notice of Funds Availability (NOFA).

The USDA will also make competitive grants to eligible entities to provide assistance toagricultural producers and rural small businesses to become more energy efficient and to userenewable energy technologies and resources. These grants are generally available to stategovernment entities, local governments, tribal governments, land-grant colleges anduniversities, rural electric cooperatives and public power entities, and other entities, asdetermined by the USDA. These grants may be used for conducting and promoting energy

audits; and for providing recommendations and information related to energy efficiency andrenewable energy. Of the total REAP funding available, 4% is dedicated to competitive grantsto provide assistance to agricultural producers and rural small businesses.

* The Renewable Energy Systems and Energy Efficiency Improvements Program was createdby the USDA pursuant to Section 9006 of the 2002 federal Farm Security and RuralInvestment Act of 2002. Funding in the amount of $23 million per year was appropriated foreach fiscal year from FY 2003-2007. In March 2008, the USDA announced that it wouldaccept $220.9 million in applications for grants, loan guarantees, and loan/grant combinationpackages under the Renewable Energy Systems and Energy Efficiency Improvements

Program. The application deadline was June 16, 2008.
http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=110_cong_bills&docid=f:h2419enr.txt.pdf


35/58

Contact:

Public Information - RBSU.S. Department of AgricultureRural Business - Cooperative ServiceUSDA/RBS, Room 5045-S, Mail Stop 3201

1400 Independence Avenue SWWashington, DC 20250-3201Phone: (202) 690-4730Fax: (202) 690-4737E-Mail: [email protected] Site: http://www.rurdev.usda.gov/rbs

Qualifying Advanced Energy Manufacturing Investment Tax Credit

Last DSIRE Review: 11/03/2009Incentive Type: Industry Recruitment/Support

State: Federal

Eligible EfficiencyTechnologies:

Lighting, Lighting Controls/Sensors, Energy ConservationTechnologies; Smart Grid


Solar Water Heat, Solar Thermal Electric, Photovoltaics, Wind,Geothermal Electric, Fuel Cells, Geothermal Heat Pumps, Batteriesand Energy Storage; Advanced Transmission Technologies thatSupport Renewable Energy Generation; , Renewable Fuels, Fuel Cellsusing Renewable Fuels, Microturbines

Applicable Sectors: Commercial, Industrial, Manufacturing

Amount: 30% of qualified investmentMaximum Incentive: Total amount of credits to be allocated shall not exceed $2.3 billion

Terms: Apply first to the Department of Energy (DOE); must receiverecommendation and ranking from DOE in order to apply to theInternal Revenue Service for certification of credits

Web Site: http://www.energy.gov/recovery/48C.htm

Authority 1: 26 USCS 48C



Summary:The U.S. Treasury Department, in consultation with the U.S. Department of Energy

(DOE), is no longer accepting applications for this tax credit. The applications were due to

DOE by September 16, 2009 with final applications due to DOE October 16, 2009. Only

applicants accepted and ranked by the DOE will be allowed to submit final applications to

the Internal Revenue Service IRS b December 16 2009. IRS will certi or re ect
http://www.energy.gov/recovery/documents/ARRA_Statute-Section48C.pdfhttp://www.energy.gov/recovery/48C.htmhttp://www.rurdev.usda.gov/rbsmailto:[email protected]


36/58

applications by January 10, 2010 and notify the certified projects of the approved amount of

their tax credit.

The American Recovery and Reinvestment Act of 2009 (H.R. 1), enacted in February 2009,established a new investment tax credit to encourage the development of a U.S.-based

Federal Incentives

Documents

Transcript of Federal Incentives